High Appraisal leads to foreclosure

jbarto65 · Joined: 04 Nov 2007 Posts: 627 0.00 Dollars($)

Well, my brothers mother in law just lost her house to foreclosure because of a higher than worth appraisal and the lender lent on a high variable rate. She lived on a fixed income, this home has been in her family for years. This situation is a shame, this should not have happened. Is there any recourse for people in situations like this? Alot of people in her same boat will lose their homes. Nobody wins in this situation, the bank will never get what they have loaned on this property. She lost a home that has been handed down for generations and really isn't worth much money wise, but sentimentally it is killing her that her mothers and grandmothers have raised children in this house and she lost it. Is there any recourse against these companies?

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi jbarto,

I am very sorry to hear this. I think we will have to be more alert and think twice before taking any decision and I think this forum is actually helping us in this regard. More and more people are facing foreclosure only because of ARM. But if someone thinking to stay in that house he should not consider ARM.

Foreclosure is occurring more and more because people do not inform the lender when they are facing problem regarding their mortgage payments. If the borrower inform then lender then he may work out some plan to get out of that problem temporarily.

Best of luck,
Larry

Caron · Posted: Mon Apr 07, 2008 4:02 am Post subject: RE: redemption after foreclosure

jbarto,

You mean the home was appraised at a value higher than what it's worth? Or is it that that the home has lost its value due to lower home prices in the area? Didn't the mother-in-law realize she was paying a higher rate; she could have at least done a refinance and saved her home.

It is true that the bank may not get what the home's worth but in situations like this, it tries to retrieve its invested amount. However, where does your brother's mother-in-law stay? If possible she can get back the property after the redemption period which ranges from 6 months to 1 year and varies from state to state.

If you can put down the name of the state, I can probably tell you the time period within which she can redeem the property.

Good luck

gmakerley · Posted: Mon Apr 07, 2008 11:55 am Post subject:

there've been plenty of horror stories such as this around the nation. unscrupulous lenders, appraisers, lawyers, borrowers and who knows who else have scammed each other and others for quite some time now; with inflated values, hidden charges, unverifiable income, truths, half-truths and outright lies.

we have not seen the end of this, either. there is truly nothing new under the sun. things have been hell-bent for thousands of years, and only the Second Coming of Christ will put a stop to it. in the meantime, we can wait for that Event, or make the best of our world while we are dwelling in it.

it is truly a pity when innocent, ignorant people are taken advantage of. what we can best do in these times is to try and prevent such occurrences from taking place again.

this forum is one way in which we can prevent many of these abuses.

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